The implementation and transposition of the Payment Services Directive (PSD) into national legislation is problematic, but Liechtenstein, Europe’s fourth smallest country, has some additional difficulties. It well exhibits the fascinating peculiarities that have gradually arisen in the European payments landscape over the course of history.
In an article in the latest issue of ClearIt Journal, published by Swiss interbank clearing system SIX, Christoph Weder of Liechtenstein Bankers Association explains that since 1924 Liechtenstein has used Swiss francs as its currency and shares the Swiss payments system. This special relationship now creates some complications.
Because Liechtenstein is part of the European Economic Area and Switzerland is not, only Liechtenstein has to implement the PSD while Switzerland does not. The transfers between Liechtenstein and Switzerland which were deemed to be domestic transfers will henceforth become international transfers. Also, and this is where it become really peculiar, the transfers conducted in Swiss francs on the Swiss infrastructure but within Liechtenstein will now have be conducted according to different rules than those on the rest of the Swiss infrastructure.
A detailed article is set to appear in the June 2009 edition of the Liechtenstein Bankers
Tags: ClearIt Journal, Liechtenstein, Liechtenstein Bankers Association, PSD, Switzerland
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